Sunoco 8K Reports Fourth Quarter 2007 Results | SEC 7 Feb 08

4Q07 Earnings Conference Call

February 7, 2008

Exhibit 99.2

* * * * *

2007 Summary

Full Year 2007

Net income before special items of $833MM ($6.94/share)*

Completed significant capital improvements at

Philadelphia and Toledo refineries

Further growth in Coke businesses

Continued returning cash to shareholders

4Q07

Net income before special items of $23MM ($0.20/share)*

Negatively impacted by sharp increase in crude oil prices

Excellent refining operations

* For reconciliation to Net Income, see slide 15.

Income Before Special Items*, MM$

2003

2004

2005

2006

2007

Refining & Supply

261

541

947

881

772

Non-Refining

213

233

194

205

169

Corp. & Net Fin.

(139)

(145)

(129)

(107)

(108)

Income Before

Special Items

335

629

1,012

979

833

EPS (Diluted),

Before Special Items

2.16

4.20

7.36

7.59

6.94

833

979

1,012

629

335

$200

$400

$600

$800

$1,000

$1,200

* For reconciliation to Net Income, see slide 14.

Income Before Special Items*, MM$

4Q06

1Q07

2Q07

3Q07

4Q07

Refining & Supply

126

482

171

Non-Refining

Corp. & Net Fin.

(36)

(27)

(32)

(20)

(29)

Income Before

Special Items

123

509

216

EPS (Diluted),

Before Special Items

1.00

0.70

4.20

1.81

0.20

216

509

123

$100

$200

$300

$400

$500

$600

* For reconciliation to Net Income, see slide 15.

Non-Refining Business Income* -

4Q07

Retail Marketing –

Earnings of $1MM

Rising wholesale prices during most of the quarter lowered

retail gasoline margins

Chemicals –

Loss of $2MM

Margins and volumes negatively impacted by rising

propylene feedstock costs

* Business Unit Net Income after tax. For reconciliation to Net Income, see slide 15.

200

210

220

230

240

250

Wholesale Gasoline Price, cpg

(87 Regular New York Harbor)

Oct-07

Sep

Oct

Nov

Dec

Propylene Price, cpp

(Refinery Grade)

Nov-07

Dec-07

Non-Refining Business Income* -

4Q07

Retail Marketing –

Earnings of $1MM

Rising wholesale prices during most of the quarter lowered

retail gasoline margins

Chemicals –

Loss of $2MM

Margins and volumes negatively impacted by rising

propylene feedstock costs

Logistics –

Earnings of $12MM

Continued steady income on strong demand and good

operations

Coke –

Loss of $2MM

Results include unfavorable $14MM after-tax adjustment due

to phase-out of alternative fuel tax credits due to high crude

oil prices

* Business Unit Net Income after tax. For reconciliation to Net Income, see slide 15.

Refining & Supply Summary –

4Q07

4Q07 Earnings* of $43MM

Lower earnings than 3Q07 or 4Q06 due primarily to weaker

refining margins

Partially offset by higher production volumes and improved

production mix

Operations

Record 4Q07 net production of 88.5 MMB (962 MB/D)

Record high distillate yield and record low residual fuel yield

in Northeast system

Record distillate jet fuel production at Toledo refinery

Higher operating expenses, primarily fuel

* Business Unit Net Income after tax. For reconciliation to Net Income, see slide 15.

Northeast Refining Margins

4Q06

1Q07

2Q07

3Q07

4Q07

Northeast Refining:

Realized Margin

6.23

5.25

12.32

6.35

5.55

6-3-2-1 VA*

5.12

8.16

14.15

8.46

6.99

Differential

+1.11

(2.91)

(1.83)

(2.11)

(1.44)

Marker Capture, %

(realized/marker)

122%

64%

87%

75%

79%

Actual vs.

Benchmark:

Crude

(0.26)

(2.24)

(1.66)

(2.14)

(2.40)

Product

1.37

(0.67)

(0.17)

0.03

0.96

Differential

+1.11

(2.91)

(1.83)

(2.11)

(1.44)

* Northeast 6-3-2-1 Value-Added

Benchmark. For definition, see slide 22.

Realized Margin vs. Benchmark, $/B

0.26

2.24

1.66

2.14

2.40

0.00

0.50

1.00

1.50

2.00

2.50

3.00

4Q06

1Q07

2Q07

3Q07

4Q07

Crude

Cost

vs.

Dated

Brent

+$1.25/B

4Q07

vs.

3Q07(+$0.26/B):

Negative timing of purchases related

to price run-up and higher

transportation costs

Partially offset by benefit of inventory

drawdowns

and lower premiums for

West African grades

0.96

0.03

(0.17)

(0.67)

1.37

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

4Q06

1Q07

2Q07

3Q07

4Q07

Products

vs.

Benchmark,

$/B

4Q07

vs.

3Q07

(+$0.93/B):

Improved product mix versus the

benchmark (more distillate, less

residual fuel)

Northeast Refining Margins

MidContinent

Refining Margins

4Q06

1Q07

2Q07

3Q07

4Q07

MidCont Refining:

Realized Margin

11.32

11.42

22.14

13.10

7.10

3-2-1 Benchmark*

8.58

11.06

28.30

17.02

7.71

Differential

+2.74

+0.36

(6.16)

(3.92)

(0.61)

Marker Capture, %

(realized/marker)

132%

103%

78%

77%

92%

Actual vs.

Benchmark:

Crude

1.55

(0.36)

(2.17)

(1.84)

(0.30)

Product

1.19

0.72

(3.99)

(2.08)

(0.31)

Differential

+2.74

+0.36

(6.16)

(3.92)

(0.61)

Realized Margin vs. Benchmark, $/B

* MidContinent

3-2-1 Benchmark. For definition, see slide 22.

(1.55)

0.36

2.17

1.84

0.30

-2.50

-1.50

-0.50

0.50

1.50

2.50

4Q06

1Q07

2Q07

3Q07

4Q07

1.19

0.72

(3.99)

(2.08)

(0.31)

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

4Q06

1Q07

2Q07

3Q07

4Q07

Products vs. Benchmark, $/B

4Q07 vs. 3Q07 (+$1.77/B):

Inventory drawdown benefit and

favorable product mix versus the

marker

Partially offset by lower

petrochemical and lubricant

margins

Crude Cost vs. WTI +$0.75, $/B

4Q07 vs. 3Q07 (-$1.54/B):

Lower Canadian Syncrude

pricing (vs. WTI) and benefit

from inventory drawdowns

Partially offset by higher-cost

WTI time structure

(backwardation)

MidContinent

Refining Margins

2008 Outlook

1Q08

Refining margins remain weak but expect market

conditions to improve as we approach summer driving

season

Expect planned maintenance activity to reduce 1Q08

refinery production by approximately 7 MMB

Retail margins improved quarter to date

FY 2008

Expect market outlook for refining to remain volatile but

constructive

Contribution from non-refining businesses expected to

grow primarily due to increased earnings from Coke

Maintain financial flexibility to execute our capital program,

pursue opportunistic growth and return cash to

shareholders

Appendix

Earnings Profile

FY03

FY04

FY05

FY06

FY07

Net Income (MM$ after tax):

Refining & Supply

261

541

947

881

772

Retail Marketing

Chemicals

Logistics

Coke

Corporate Expenses

(40)

(67)

(84)

(58)

(67)

Net Financing Expenses & Other

(99)

(78)

(45)

(49)

(41)

Income Before Special Items

335

629

1,012

979

833

Special Items

(23)

(24)

(38)

Total Net Income

312

605

974

979

891

EPS (Diluted), Income Before

Special Items

2.16

4.20

7.36

7.59

6.94

EPS (Diluted), Net Income

2.01

4.04

7.08

7.59

7.43

Earnings Profile

4Q06

FY06

1Q07

2Q07

3Q07

4Q07

FY07

Net Income (Loss) (MM$ after tax):

Refining & Supply

126

881

482

171

772

Retail Marketing

(11)

Chemicals

(2)

Logistics

Coke

(2)

Corporate Expenses

(20)

(58)

(15)

(18)

(11)

(23)

(67)

Net Financing Expenses & Other

(16)

(49)

(12)

(14)

(9)

(6)

(41)

Income Before Special Items

123

979

509

216

833

Special Items

(32)

Total Net Income (Loss)

123

979

175

509

216

(9)

891

EPS (Diluted), Income Before

Special Items

1.00

7.59

0.70

4.20

1.81

0.20

6.94

EPS (Diluted), Net Income (Loss)

1.00

7.59

1.44

4.20

1.81

(0.08)

7.43

Key Margin Indicators

4Q06

FY06

1Q07

2Q07

3Q07

4Q07

FY07

Refining & Supply, $/B

Realized Northeast

6.23

7.92

5.25

12.32

6.35

5.55

7.38

Realized MidContinent

11.32

12.46

11.42

22.14

13.10

7.10

13.17

Realized Total R&S

7.51

9.09

6.98

14.70

8.06

5.95

8.87

Retail Marketing, cpg

Gasoline

6.8

9.9

8.3

10.1

11.1

7.7

9.3

Distillate

13.5

11.2

16.3

9.5

8.1

13.3

12.0

Chemicals, cpp

Phenol and Related

8.7

8.0

8.8

8.5

8.7

7.9

8.5

Polypropylene

12.9

12.4

12.7

11.4

11.7

10.4

11.6

Total Chemicals

10.5

9.9

10.5

9.7

10.0

8.9

9.8

Dated Brent Crude Oil, $/B

59.74

65.14

57.28

68.77

74.84

88.69

72.52

Natural Gas, $/DT

7.26

6.99

7.18

7.65

6.24

7.39

7.12

Key Volume Indicators

4Q06

FY06

1Q07

2Q07

3Q07

4Q07

FY07

Refining & Supply

Northeast:

Crude Throughputs, MB/D

603

616

539

614

643

647

611

% Capacity

Net Prod. Available for Sale, MB/D

662

670

599

671

703

716

673

MidContinent:

Crude Throughputs, MB/D

211

225

222

205

230

236

224

% Capacity

Net Prod. Available for Sale, MB/D

221

233

232

215

240

246

233

Total Refining & Supply:

Crude Throughputs, MB/D

814

841

762

819

873

883

835

% Capacity

Net Prod. Available for Sale, MB/D

883

903

831

886

943

962

906

Net Prod. Available for Sale, MMB

329

331

Refining & Supply -

Gasoline and Distillate Production

4Q06

FY06

1Q07

2Q07

3Q07

4Q07

FY07

Northeast

Gasoline Production, MB/D

313.7

323.5

289.3

327.8

342.7

344.8

326.4

RFG

50%

53%

51%

52%

53%

55%

53%

Conventional

50%

47%

49%

48%

47%

45%

47%

Distillate Production, MB/D

234.3

230.2

210.1

231.0

249.8

259.7

237.8

On-Road Diesel Fuel

49%

47%

55%

61%

57%

55%

57%

Heating Oil / Off-Road Diesel

30%

32%

25%

23%

27%

28%

26%

Jet Fuel

17%

16%

14%

15%

Kerosene/Other

MidContinent

Gasoline Production, MB/D

106.8

112.7

112.1

110.3

114.2

114.8

112.8

RFG

Conventional

100%

Distillate Production, MB/D

72.2

75.3

66.3

79.2

85.4

76.6

On-Road Diesel Fuel

34%

38%

40%

35%

37%

Heating Oil / Off-Road Diesel

32%

29%

28%

24%

25%

26%

Jet Fuel

34%

33%

34%

36%

40%

39%

37%

Kerosene/Other

Total Refining

Gasoline Production, MB/D

420.5

436.2

401.4

438.1

456.9

459.6

439.2

RFG

37%

39%

37%

39%

40%

41%

39%

Conventional

63%

61%

63%

61%

60%

59%

61%

Distillate Production, MB/D

306.5

305.5

285.4

297.3

329.0

345.1

314.4

On-Road Diesel Fuel

46%

45%

51%

56%

52%

50%

52%

Heating Oil / Off-Road Diesel

30%

31%

26%

23%

26%

28%

26%

Jet Fuel

21%

20%

21%

19%

20%

21%

20%

Kerosene/Other

Key Volume Indicators

4Q06

FY06

1Q07

2Q07

3Q07

4Q07

FY07

Retail Marketing

Gasoline Sales, MM gal

1,179

4,648

1,131

1,175

1,170

1,138

4,614

Middle Distillate Sales, MM gal

165

658

177

152

144

149

622

Total Sales, MM gal

1,344

5,306

1,308

1,327

1,314

1,287

5,236

Gasoline and Diesel Throughput

(Company-owned or leased outlets)

(M gal/Site/Month)

149

144

142

152

154

152

150

Merchandise Sales (M$/Store/Month)

Chemicals

Phenol and Related Sales, MM#

632

2,535

592

644

633

639

2,508

Polypropylene Sales, MM#

562

2,243

548

576

623

550

2,297

Other Sales, MM#

Total, MM#

1,219

4,866

1,160

1,242

1,275

1,208

4,885

Coke

Production, M tons:

United States

632

2,510

611

620

621

617

2,469

Brazil

237

403

419

1,091

Share Repurchase Activity

Repurchased

Total

Cost

Average

Price

(MM)

(MM$)

($/share)

2000

10.4

144

13.87

2001

21.4

393

18.32

2002

2003

5.8

136

23.36

2004

15.9

568

35.68

2005

6.7

435

64.57

2006

12.2

871

71.13

2007

4.0

300

75.35

Total

76.4

2,847

37.20

At 12/31/07:

Shares O/S = 117.6 MM

Net Share Reduction in 2007 = 3%

Remaining Authorization = $649MM

Financial Ratios

12/31/06

3/31/07

6/30/07

9/30/07

12/31/07

Total Debt (GAAP Basis)

1,987

2,086

1,973

2,039

1,728

Plus: Debt Guarantees

Less: Cash

(263)

(222)

(240)

(263)

(648)

Net Debt (Revolver Covenant Basis)

1,729

1,869

1,737

1,779

1,083

Shareholders’ Equity (GAAP Basis)

2,075

2,159

2,576

2,566

2,533

SXL * Minority Interest

503

349

348

353

356

Equity (Revolver Covenant Basis)

2,578

2,508

2,924

2,919

2,889

Debt / Capital (GAAP Basis)

49%

43%

44%

41%

Net Debt / Capital **

(Revolver Covenant Basis)

40%

43%

37%

38%

27%

Sunoco Logistics Partners L.P. (NYSE: SXL)

The

Net

Debt

Capital

ratio

used

Sunoco

management

its

internal

financial

analysis

and

by investors and creditors in the assessment of Sunoco’s financial position.

Sunoco Refinery Benchmark Margins

MidContinent

3-2-1 Benchmark

3 WTI Crude: NYMEX futures L1 Close + $0.75 for transportation

2 Unleaded Regular Gasoline: Chicago Pipeline Platt’s Low

1 No. 2 Low Sulfur (Low Sulfur Diesel): Fuel Oil Chicago Pipeline Platt’s Low

Northeast 6-3-2-1 Value-Added Benchmark

6 Dated Brent Crude: Platt’s Mid + $1.25 for transportation

3 Gasoline: 50% Unleaded RBOB NY Harbor Barge Platt's Low

50% Unleaded Regular Gasoline NY Harbor Barge Platt's Low

2 Distillate: 55% ULSD/LSD NY Harbor Barge Platt's Low

20% Jet/Kero

NY Harbor Barge Platt's Low

25% No.2 Fuel Oil NY Harbor Barge Platt's Low

1 No. 6 0.3% Sulfur High Pour Resid: NY Harbor Barge Platt’s Low

4Q06

1Q07

2Q07

3Q07

4Q07

Northeast Refining:

6-3-2-1 Value-Added

Benchmark

5.12

8.16

14.15

8.46

6.99

4Q06

1Q07

2Q07

3Q07

4Q07

MidContinent Refining:

3-2-1 Benchmark

8.58

11.06

28.30

17.02

7.71

For More Information

Media releases and SEC filings are available

on our website at www.SunocoInc.com

Contact for more information:

Terry Delaney

(215) 977-6106

Tom Harr

(215) 977-6764

Safe Harbor Statement

This

slide

presentation

should

reviewed

conjunction

with

Sunoco’s

Fourth

Quarter

2007

earnings

conference

call

held

February

2008

3:00

p.m.

ET.

You

may

listen

the

audio

portion

the

conference

call

the

website

audio

recording

will

available

after

the

call’s

completion

calling

1-800-642-1687

and

entering

conference

ID#30394145.

Statements

this

presentation

that

are

not

historical

facts

are

forward-looking

statements

intended

covered

the

safe

harbor

provisions

Section

27A

the

Securities

Act

1933

and

Section

21E

the

Securities

Exchange

Act

1934.

These

forward-looking

statements

are

based

upon

assumptions

Sunoco

concerning

future

conditions,

any

all

which

ultimately

may

prove

inaccurate,

and

upon

the

current

knowledge,

beliefs

and

expectations

Sunoco

management.

These

forward-looking

statements

are

not

guarantees

future

performance.

Forward-looking

statements

are

inherently

uncertain

and

involve

significant

risks

and

uncertainties

that

could

cause

actual

results

differ

materially

from

those

described

during

this

presentation.

Such

risks

and

uncertainties

include

economic,

business,

competitive

and/or

regulatory

factors

affecting

Sunoco's

business,

well

uncertainties

the

outcomes

pending

future

litigation.

accordance

with

the

safe

harbor

provisions

the

Private

Securities

Litigation

Reform

Act

1995,

Sunoco

has

included

its

Annual

Report

Form

10-K

for

the

year

ended

December

31,

2006,

and

its

subsequent

Form

10-Q

and

Form

8-K

filings,

cautionary

language

identifying

important

factors

(though

not

necessarily

all

such

factors)

that

could

cause

future

outcomes

differ

materially

from

those

set

forth

the

forward-looking

statements.

For

information

concerning

these

factors,

see

Sunoco's

Securities

and

Exchange

Commission

filings,

available

Sunoco's

website

www.SunocoInc.com.

Sunoco

expressly

disclaims

any

obligation

update

alter

its

forward-looking

statements,

whether

result

new

information,

future

events

otherwise.

This

presentation

includes

certain

non-GAAP

financial

measures

intended

supplement,

not

substitute

for,

comparable

GAAP

measures.

Reconciliations

non-GAAP

financial

measures

GAAP

financial

measures

are

provided

the

Appendix

the

end

the

presentation.

Investors

are

urged

consider

carefully

the

comparable

GAAP

measures

and

the

reconciliations

those

measures

provided

the

Appendix,

our

website

Sunoco Inactive 8-KSunoco Reports Fourth Quarter 2007 Results